Options for bringing your empty property back into use
The following example shows the estimated annual cost of keeping a property empty in Rotherham and takes into account how long the property has been empty.
| Associated charges | Empty Property Estimated cost per annum |
|---|---|
|
Council Tax (Based on Band A in 2024/2025) |
£1,434.82 |
|
Empty property premium charge as per below |
|
|
Empty over two years |
£1,434.82 |
|
Empty over five years |
£2,869.64 |
|
Empty over ten years |
£4,304.46 |
|
Maintenance (garden clearance, drain down, clearing gutters) |
£550.00* |
|
Utilities – Standing Charge** |
|
|
Gas – 31.43p per day** |
£112.82 |
|
Electricity – 60.10p per day** |
£217.80 |
|
Water, surface water and sewerage^ |
£103.19 |
|
Security (Preventing access; boarding-up of the property) |
£200.00 |
|
Vacant Property Insurance (based on costs for 2024) |
£240.00*** |
|
Total – For a property empty for less than two years |
£2,858.63 |
|
A property empty for over two years |
£4,293.45 |
|
A property empty for over five years |
£5,728.27 |
|
A property empty for over ten years |
£7,163.09 |
* Average UK Household Budget 2024
** Energy price cap calculator - MoneySavingExpert
^ Customers with a meter - Yorkshire Water/
***Unoccupied home insurance: what is it and how does it work? (unbiased.co.uk)
Leaving a property empty could result in a nett loss of between £2,858.63 and £7,163.09 annually and is dependent upon how long it has been empty, as shown in the above table.
The following outlines the benefits of bringing an empty property back into use and either selling it or renting it out on the open market.
The average sales value for a Council Tax Band A rated property, once associated charges have been accounted for, could be between £130,000 and £170,000, as shown in the table below. However, the associated charges will differ depending upon the agent and whether sold on the open market or via an auction.
| Type of property | Average sales value (January 2024) | Estate agent fees (Average 1.42%) + | Clearance cost | Expected sales value once charges have been accounted for |
|---|---|---|---|---|
|
Terraced property |
£130,192 |
£1,848.73 |
£759.85 |
£132,800.58 |
|
Semi-detached property |
£152,458 |
£2,164.90 |
£759.85 |
£155,382.75 |
+ How much should I pay the estate agent?
Letting your property
Properties can be let privately or through a recognised letting agent.
The benefits of using a good, accredited agent, albeit at a cost, is that they will manage the property for you as well as making sure that you meet all your legal responsibilities as a landlord.
Before signing with any letting agent please check that they are a member of both an appropriate body such as the Association of Residential Letting Agents (ARLA) or a similar body and they belong to an approved redress scheme; both of which are there to protect you and your tenants.
Find out about the redress scheme
Should the property owner wish to keep the property, an alternative option for reducing the cost of keeping your property empty is to let it on the private rental market. This is extremely beneficial if you do not have a mortgage on the property, if you do have an existing mortgage you will have to inform your mortgage lender and arrange for a consent for lease.
The following table provides indicative annual costs that a landlord can expect to receive and pay towards managing a rental property. It is by no means all-inclusive and offers an estimate of the associated costs related to renting. It is anticipated that anyone considering becoming a landlord should look at all the information available to enable them to decide whether it is appropriate for them or not.
| Associated costs | Two-bedroom property | Three-bedroom property |
|---|---|---|
|
Market Rent annual value (Hometrack Property Data) |
£7,800.00 |
£9,568.00 |
|
Less |
|
|
|
Letting agent fees (Approx 10%) based on annual rent |
£780.00 |
£956.00 |
|
£150.00 |
£150.00 |
|
|
Repairs (assume 20% of annual rent) |
£1,560.00 |
£1,913.00 |
|
Certificates - EPC (£60-£120), Gas (£80), Electrical (£212.50) |
£382.50 |
£382.50 |
|
Landlord membership |
£99.00 |
£99.00 |
|
Expected annual rental once charges have been accounted for |
£4,828.50 |
£6,067.50 |